Pair Correlation Between Home Depot and Sprint

This module allows you to analyze existing cross correlation between The Home Depot Inc and Sprint Corporation. You can compare the effects of market volatilities on Home Depot and Sprint and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Home Depot with a short position of Sprint. See also your portfolio center. Please also check ongoing floating volatility patterns of Home Depot and Sprint.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 The Home Depot Inc  vs   Sprint Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, The Home Depot Inc is expected to under-perform the Sprint. But the stock apears to be less risky and, when comparing its historical volatility, The Home Depot Inc is 1.32 times less risky than Sprint. The stock trades about -0.24 of its potential returns per unit of risk. The Sprint Corporation is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  530.00  in Sprint Corporation on January 23, 2018 and sell it today you would earn a total of  5.00  from holding Sprint Corporation or generate 0.94% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Home Depot and Sprint
-0.11

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding The Home Depot Inc and Sprint Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sprint and Home Depot is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Home Depot Inc are associated (or correlated) with Sprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint has no effect on the direction of Home Depot i.e. Home Depot and Sprint go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

The Home Depot

  
0 

Risk-Adjusted Performance

Over the last 30 days The Home Depot Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Sprint

  
1 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Corporation are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.